Skip to main content
No. of Recommendations: 0
I need advice on how to handle my current (and new) debt situation. We recently had a 2nd child and daycare costs are killing us, $460 per week for 2 kids. We went from always having money leftover after paying bills to living paycheck to paycheck, or dipping into the savings account just a little.
This week, our AC had to be replaced and our hot water heater had 2 gas leaks, the damage total was $6100. The AC portion is on a 3 year, no interest finance plan for the $5800 cost which comes out to about $161 per month.
Next, one of our cars will be paid off in December so we have 4 payments left.
We have enough in our savings to pay off everything and get back to living more comfortably once the car is paid off and the AC bill is paid. Like most people, our savings account isn't giving very much interest so there really isn't a benefit to holding onto the money.
Should we pay off everything from our savings or should we tough it out and dip into the savings when we need to to pay the bills each month?
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.